In the last few years, passive optical LAN has emerged as a promising approach to deliver broadband services to a large network of subscribers. Rise in fiber deployments, coupled with increasing demand for better bandwidth across the RoW (Rest of the World) and Asia Pacific regions, is bolstering growth prospects for the global market for passive optical LAN (POL). The demand for POL technology grew impressively in the first quarter of 2015. Contrary to the past several quarters, when Europe accounted for a large share of the market, demand in the present year is driven by China.

The paradigm shift from installing central office equipment to deploying customer premises equipment, which indicates increased roll out of “Fiber to the Home” services in China, has acted in favor of the passive optical network (PON) market, subsequently boosting the POL market in Asia Pacific. Sales in China have incredibly surged over the first half of 2015 and now the country accounts for a major share of the worldwide PON demand. Such exponential growth of the market for passive optical network will fuel the demand from the global POL market.

According to a report published by Transparency Market Research, the global market for passive optical LAN (POL), which stood at US$9.8 bn in 2013, will reach US$33.8 bn by the end of 2020. If the figures hold true, the global POL market will develop at a CAGR of 19.2% between 2014 and 2020.

Demand for Green Network Solutions Fuel Global POL Market

Globally increasing demand for green network solutions is fuelling the application of passive optical components, which in turn drives the global POL market. With an aim to leverage green technologies, governments of several nations are upgrading research infrastructure and increasing their investments in fiber optics technologies. The prevailing situation therefore aids the robust development of the POL market.

Passive optical LAN provides better bandwidth capacity and greater reach. Fiber optic used for deploying PON is noncorrosive and highly resistant to lightening, even when deployed in a seaside location. Apart from this, POL boasts lower operational costs, consumes less energy, and poses minimal risk. Owing to such factors the internet and telecom giants are pumping in millions of dollars of investment in the global POL market, thereby fuelling its growth. Among the various POL components, the demand for wavelength division multiplexers/de-multiplexers surged exponentially in 2013. The demand for patch cords and pigtails also increased, occupying 11% of the global POL market the same year.

With rapidly growing deployment of PON in the residential, commercial, as well as hospitality sectors, subscribers are ensured with high network availability. This has aroused much interest regarding network survivability. Flexible and robust survivable network architectures are highly desirable in the aforementioned sectors. Switching to fiber optics helps achieve greener, energy-efficient, and affordable network solutions, which is why the global market for passive optical LAN is poised to register exponential growth in the forthcoming years.